What to Look for in a Real Estate Contract: Buyer-Friendly Clauses Explained
Your Legal Advantage Starts with the Right Paperwork—by Hanson Capital Homes
Introduction: Don't Sign Blind—Here’s What You Need to Know
You finally found the one—the home you love. You're ready to make an offer, and your agent says, “We'll draw up the contract.”
Now what?
If you’re like most buyers in Chattanooga Valley, TN, or North Georgia, your eyes may glaze over at the first “Whereas” or “Hereinafter.” But that real estate contract? It's not just paperwork—it’s your shield.
At Hanson Capital Homes, we believe buyers should never walk into a deal blind. Understanding key buyer-friendly clauses can protect your money, your timeline, and your sanity—especially in today’s competitive market.
This guide will break down the essential contract terms that benefit buyers, including what to insist on, what to watch for, and how to negotiate them like a pro (even if it’s your first time).
Why Contracts Matter More in 2025
Interest rates are still shifting—locking in protections is critical
Insurance premiums are climbing—you need time to shop around
Homes are moving faster—you want a contract that protects your earnest money if things go sideways
Let’s unpack it all.
📝 Featured Snippet: Key Buyer-Friendly Clauses in a Real Estate Contract
Top clauses buyers should look for:
Inspection contingency
Financing (loan) contingency
Appraisal contingency
Title review period
Termination options
Right to repairs or repair credits
Closing cost contributions
Home warranty coverage
Personal property inclusions
1. Inspection Contingency – The "Let Me Double Check" Clause
What it does: Gives the buyer a window (typically 5–10 days in TN/GA) to conduct a home inspection and back out or renegotiate based on the results.
🎯 Hanson Tip: Always include this clause—even for “as-is” homes. It doesn’t force the seller to fix anything, but it gives you options if serious issues arise.
💡 Local Insight: Many buyers in Lookout Valley and Ringgold back out during inspection due to foundation or crawlspace surprises. Don’t skip this!
2. Financing Contingency – Because No One Likes Surprises
What it does: Lets you cancel if your loan falls through—without losing your earnest money.
📌 Make sure your financing contingency period extends beyond your loan approval timeline, especially with VA or USDA loans, which may take longer.
3. Appraisal Contingency – The “Is It Really Worth That Much?” Clause
What it does: Protects you if the home appraises for less than the offer price.
🏠 In hot markets like East Brainerd or Fort Oglethorpe, buyers sometimes waive this—but that’s risky unless you're paying cash or have reserves.
🎯 Hanson Tip: If waiving the clause, ask your agent to include a gap clause capping your extra out-of-pocket exposure.
4. Title Review & Clear Ownership Clause
What it does: Ensures the seller has the legal right to sell the home and that there are no liens, judgments, or boundary issues.
🧾 Tennessee and Georgia both use title attorneys or title companies. You’ll want a clause allowing time to review the title commitment and cancel if anything concerning comes up.
5. Right to Repairs OR Repair Credits
What it does: Gives you the right to request repairs or ask for a seller-paid credit at closing instead.
⚒️ Buyers in older homes near Red Bank or Trenton often face outdated plumbing or electrical issues. This clause lets you negotiate instead of walking away.
6. Home Warranty Coverage Clause
What it does: Provides peace of mind that major systems are covered (for at least a year), often paid by the seller.
🎯 Include language asking for a 12-month home warranty from a reputable provider—especially if the HVAC or appliances are aging.
7. Personal Property Inclusion Clause
What it does: Ensures that promised items (appliances, curtains, outdoor sheds, etc.) are included in the deal.
🧺 Pro tip: List items specifically by name and brand (e.g., "Samsung refrigerator in kitchen") to avoid confusion.
8. Closing Cost Assistance
What it does: Lets you request a seller contribution toward your costs—typically expressed as a flat dollar amount or % of purchase price.
💰 In 2025, many sellers offer $3,000–$7,500 in credits, especially if you don’t push the price too far below list.
🎯 Ask your lender what your max allowable credit is—it varies by loan type.
9. Kick-Out or Termination Options
What it does: Gives you an out if your current home doesn’t sell, or if your situation changes dramatically.
🔁 Also helpful for buyers using a 1031 exchange or needing flexible timelines.
10. HOA Disclosures & Review Period
What it does: Ensures you have time to review the HOA rules, fees, and restrictions before committing.
🏘️ Especially important in East Tennessee communities where HOA rules may limit rentals, parking, pets, or even paint colors.
Common Buyer Mistakes with Contracts (and How to Avoid Them)
🚫 Skipping the fine print: Every initial sounds easy—until you’re locked in 🚫 Relying on verbal promises: If it’s not in writing, it doesn’t exist 🚫 Not asking for time extensions: If financing or inspection is delayed, always request an amendment before your contingency expires
Humor Break: Don’t Be That Buyer…
"If your contract doesn't include the refrigerator, and you only find out when you're unpacking groceries—congrats, you're now the proud owner of… an empty box."
Conclusion: Make the Contract Work for You—Not Against You
Buying a home is a major milestone—and your contract should protect that journey. From inspection windows to financing safeguards and repair requests, these clauses aren’t just formalities—they're your backup plan.
At Hanson Capital Homes, we review every line of your contract with your best interest in mind. Whether you're buying your first home or your forever one, we help make sure what’s in writing actually works for you.
🎯 Ready to review or write a contract that protects your goals? Click here!
